In This Article:
American firearm manufacturing company Ruger (NYSE:RGR) fell short of the market’s revenue expectations in Q1 CY2025, with sales flat year on year at $135.7 million. Its GAAP profit of $0.46 per share increased from $0.40 in the same quarter last year.
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Ruger (RGR) Q1 CY2025 Highlights:
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Revenue: $135.7 million vs analyst estimates of $148 million (flat year on year, 8.3% miss)
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Adjusted EBITDA: $14.3 million vs analyst estimates of $18.71 million (10.5% margin, 23.6% miss)
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Operating Margin: 6.2%, in line with the same quarter last year
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Free Cash Flow Margin: 7.4%, up from 4.1% in the same quarter last year
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Market Capitalization: $673.5 million
Company Overview
Founded in 1949, Ruger (NYSE:RGR) is an American manufacturer of firearms for the commercial sporting market.
Sales Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Ruger’s sales grew at a sluggish 4.9% compounded annual growth rate over the last five years. This was below our standard for the consumer discretionary sector and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Ruger’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 3.9% annually.
This quarter, Ruger missed Wall Street’s estimates and reported a rather uninspiring 0.8% year-on-year revenue decline, generating $135.7 million of revenue.
We also like to judge companies based on their projected revenue growth, but not enough Wall Street analysts cover the company for it to have reliable consensus estimates.
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Operating Margin
Ruger’s operating margin has shrunk over the last 12 months and averaged 7.2% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.